18th Mar 2025 12:05
(Alliance News) - European stocks were in the green at midday on Tuesday, with risk appetite "tentatively returning" ahead of a slew of central bank decisions later this week.
The central banking bonanza kicks off with Bank of Japan decision in the early hours of Wednesday, before the Federal Reserve that evening. The Bank of England is among those announcing a rate decision on Thursday.
The FTSE 100 index added 32.62 points, 0.4%, at 8,713.28. The FTSE 250 was up 152.74 points, 0.8%, at 20,181.29, and the AIM All-Share was up 4.79 points, 0.7%, at 693.75.
The Cboe UK 100 was up 0.4% at 870.82, the Cboe UK 250 added 1.0% at 17,608.07, and the Cboe Small Companies climbed 0.3% at 15,646.96.
"The FTSE 100's recovery from a dip earlier this month continued with pace," said AJ Bell analyst Russ Mould. "Investor risk appetite is tentatively returning, as evidenced by miners leading the charge and people buying the recent dip in retailers. However, investors aren't diving head first into the deep end. They're taking things slowly, hence why banks and their reassuring dividends were also in demand."
Barclays was among the best large-cap performers in London, up 2.9%. Copper miner Antofagasta added 2.1%.
The Kremlin said a highly-anticipated phone call between Vladimir Putin and Donald Trump will take place between 1300 GMT and 1500 GMT on Tuesday. The pair will discuss Ukraine and the "normalisation" of US-Russian ties.
This would be the second phone call between the two presidents since Trump returned to office in January.
Swissquote analyst Ipek Ozkardeskaya commented: "There is growing hope that the US efforts to broker a peace deal between Russia and Ukraine will be successful - a development that could restore trade relations between Russia and the EU, ease energy prices in Europe and support growth."
Iron ore pellet maker Ferrexpo, which operates in Ukraine, traded 3.4% higher in London. The stock has jumped roughly two-thirds over the past year, but is down by around a quarter so far in 2025.
The pound was quoted at USD1.2981 at midday on Tuesday in London, down from USD1.2987 at the equities close on Monday. The euro stood at USD1.0928, up against USD1.0922. Against the yen, the dollar was trading higher at JPY149.59 compared to JPY148.57.
Sterling eased from an intraday high of USD1.3004, its best level since November.
Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.2%, the S&P 500 index down 0.3%, and the Nasdaq Composite down 0.4%.
The Fed is expected to leave rates unmoved on Wednesday. The Federal Open Market Committee kicks off its two-day meeting on Tuesday.
Exness analyst Terence Hove commented: "While markets widely expect the central bank to hold rates steady, market participants will closely monitor Fed Chair Jerome Powell's speech, which could influence sentiment and monetary policy expectations. A dovish stance should weigh on the greenback, while a more restrictive outlook is likely to provide temporary support for the currency."
In European equities on Tuesday, the CAC 40 in Paris was up 0.2%, while the DAX 40 in Frankfurt was up 1.1%.
German chancellor-in-waiting Friedrich Merz said that his proposed huge spending boost for defence was needed because of Russian President Putin's "war of aggression against Europe".
"It is a war against Europe and not just a war against the territorial integrity of Ukraine," Merz told parliament ahead of a vote on plans that also include massive new funding for infrastructure.
Merz said Russia's aggression had included cyber-attacks and espionage, arson and contract killings as well as disinformation campaigns that "attempt to divide and marginalise the EU".
Europe today faces "an aggressive Russia" as well as "an unpredictable US of America", said Merz, whose conservative CDU/CSU bloc won last month's general elections.
Defence firm Rheinmetall added 4.2%, one of the best large-cap performers in Frankfurt. The expectation of a rise in government defence spending has meant the stock has more than doubled so far in 2025.
Pensana shares were up 29% in London at midday.
The rare earths explorer said it has received approvals for full financing of its Longonjo rare earth project, totalling around USD268 million. Longonjo is expected to produce around 20,000 tonnes of mixed rare earth carbonate a year.
Trustpilot shares were up as high as 15% in early trade, before settling 5.5% higher at midday.
The consumer reviews platform swung to pretax profit of USD5.2 million in 2024, from a loss of USD1.9 million in 2023. It expects a 2025 outturn ahead of market expectations.
Sabre Insurance added 7.0%. The motor insurance underwriter reports improved 2024 earnings and announced a share buyback.
Pretax profit in 2024 more than doubled to GBP48.6 million from GBP23.6 million. Gross written premiums were up 5.0% to GBP236.4 million from GBP225.1 million.
"We are extremely pleased with our performance in 2024, demonstrating strong cycle management over the past twelve months. We grew strongly in the first half of the year when market conditions were attractive, and we maintained our strict underwriting discipline despite a steep decline in market prices during the second half," Chief Executive Officer Geoff Carter said. "This allowed Sabre to deliver a strong financial performance and robust capital position for the business. We were delighted to announce our Ambition 2030 growth strategy in December last year and are encouraged by the early progress we have made as we continue to invest in the growth of the business."
Sabre is to execute its first share buyback, worth about GBP5 million.
Gold was quoted at USD3,026.51 an ounce at midday in London on Tuesday, up from USD2,988.54 at the London equities close on Monday. Gold hit a record high above USD3,029 an ounce.
Brent oil was quoted at USD71.81 a barrel, up from USD71.04 late Monday.
Still to come on Tuesday's economic calendar, there is US industrial production data at 1315 GMT.
By Emily Parsons, Alliance News reporter
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